In its quarterly economic forecast released on May 19, the Manufacturers Alliance/MAPI predicts that inflation-adjusted gross domestic product (GDP) will expand by 2.7% in 2011 and by 2.9% in 2012. The 2011 forecast represents a downgrade over the previously estimated 3.2% growth. The 2012 forecast is also down slightly from the 3% growth anticipated in the February 2011 quarterly report.
"The economy is continuing to grow at a moderate pace with consumer durable goods, business equipment, and exports leading the way," said Daniel J. Meckstroth, Ph.D., Manufacturers Alliance/MAPI Chief Economist. "Rising oil prices and government austerity at all levels, however, give pause to any excessive optimism."
Manufacturing production will outpace the overall economy and is expected to show 6.2% growth in 2011 and 4.2% growth in 2012. Manufacturing is expected to see a hiring increase with the sector forecast to add 288,000 jobs in 2011 and 374,000 jobs in 2012....